Workers in Iran Face 170% Deficit in Livelihood

The head of the wage working group of the Supreme Council of Labor says there is a "170%" gap between the "livelihood basket" and the "minimum wage of workers" in Iran. Faramarz Tofighi pointed out the "deep gap" between the livelihood basket and the minimum wage, warning that "workers can no longer tolerate their tables becoming smaller." He calculated a 301% inflation rate since the implementation of targeted subsidies in December 2010, a 108% increase in wages, and a 130.66% cumulative wage increase during the same period, estimating the "backwardness of workers' wages". According to him, "the wage deficit from inflation indicators is about 193%, and the cumulative wage deficit from inflation indicators is around 170%; this 170% is the serious livelihood deficit of workers." Tofighi announced that the minimum wage for the current year is 921,931 tomans, while the approved "minimum livelihood basket" by the Supreme Labor Council is 2,285,000 tomans. He stated that this year, the livelihood basket has a "170%" gap with the minimum wage. Tofighi interpreted these figures as the "shrinking table" of workers and added that the incorrect implementation of Article 41 of the Labor Law has led to "this glaring gap between wages and the minimum livelihood basket." According to two clauses of Article 41 of the Labor Law, the monthly minimum wage of workers should be determined based on the inflation rate and the monthly living costs of a working-class household. However, labor organizations claim that the second clause has never been considered in determining the minimum wage. The head of the wage working group warned that "the wage-earning class cannot tolerate a smaller table" and cautioned that "any pressure could have irreparable consequences on the family and social structures; exactly like an earthquake." Previously, the head of the Supreme Council of Labor Associations had announced that workers demand the calculation of "the inflation rate of their consumption basket and the determination of the wage based on it." According to Gholamreza Abbasi, it was agreed that the figure of "2,550,000 tomans" would be used as the monthly cost basket for workers, "to be the basis for wage decision-making in the Supreme Labor Council meetings, but unfortunately, it was not considered in determining the wage for 1396, and this year, with the existing inflation, this figure will definitely exceed that." The Supreme Labor Council determined the monthly minimum wage for 1396 at 930,000 tomans, which led to protests from labor organizations. Abbasi stated that the inflation rate announced by the Central Bank or the Statistical Center of Iran "is actually the inflation rate of 300 items that are considered on average, while workers and low-income groups deal with at least 40 items." Fathollah Bayat, head of the Contract Workers Union, also told ISNA that "this year the living conditions of workers are more specific, and the Supreme Labor Council should see the workers' table more vividly and consider a deserving and fair wage." Meanwhile, ILNA news agency reported based on statistics published by the Central Bank, in a report titled "Results of Household Budget Review in Urban Areas of Iran - Year 1395", that Iranian families are becoming "less consuming". According to ILNA, in the attached list to the Central Bank's household budget report, "even for example, one item cannot be found that has seen a significant increase in consumption."